In order to enhance the process by
which the various Funds' investments are governed
and managed, the Board of Regents
of The University of Texas System on March 1, 1996
contracted with The University of Texas Investment
Management Company ("UTIMCO") to invest funds under its fiduciary control.
UTIMCO is a 501(c)(3) corporation modeled after investment
management companies organized by Harvard, Princeton,
Stanford, and Duke Universities to invest their respective
assets. It is the first investment corporation formed
by a public university system and oversees investments
in the Permanent University Fund,
the Permanent Health Fund, the
Long Term Fund, and Intermediate Term Fund, and other assets.

UTIMCO is governed by a nine-member Board of Directors consisting of at least three members of the UT System Board of Regents and four other members appointed by the UT System Board-one of whom may be the UT System Chancellor-and two members appointed by the Texas A&M System Board. At least three members appointed by the UT System Board and at least one member appointed by the Texas A&M System Board must have substantial background and expertise in investments.